Title: Duty Drawbacks, Competitiveness, and Growth: Are Duty Drawbacks Worth the Hassle?
Abstract: No AccessPolicy Research Working Papers21 Jun 2013Duty Drawbacks, Competitiveness, and Growth: Are Duty Drawbacks Worth the Hassle?Authors/Editors: Elena IanchovichinaElena Ianchovichinahttps://doi.org/10.1596/1813-9450-3498SectionsAboutPDF (0.4 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Many countries use duty drawbacks on exports, yet they have been given little attention in the literature and there is no consensus whether countries should embrace or abandon them. Ianchovichina asserts that the answer depends on a country's development priorities and economic conditions. An increase in the drawback has a positive impact on export competitiveness and employment, but could lead to exports with low domestic value added. The welfare effects of duty drawback reform are ambiguous. An increase in the drawback is more likely to be welfare improving if the economy is small with high input tariffs, low initial drawback, low administrative costs, and leakages in the tariff collection system. In China duty drawback removal after meeting WTO commitments will deepen domestic supply chains and improve welfare, but will hurt China's economic efficiency, export competitiveness, and real factor incomes. Further liberalization could mitigate these negative effects. This paper—a product of the Economic Policy Division, Poverty Reduction and Economic Management Network—is part of a larger effort in the network to study growth and competitiveness. Previous bookNext book FiguresreferencesRecommendeddetailsCited byTariff costs embodied in product prices: a dynamic analysis from global value chain perspectiveEconomic Systems Research, Vol.33, No.11 June 2020Transparency of risk for global and complex network decisions in the automotive industryInternational Journal of Production Economics, Vol.175Trade Policy Reform and the Missing Revenue†Journal of African Economies, Vol.17, No.14 May 2007 View Published: January 2005 Copyright & Permissions Related RegionsEast Asia & PacificRelated CountriesChinaRelated TopicsFinance and Financial Sector DevelopmentInternational Economics & TradeMacroeconomics and Economic GrowthPrivate Sector DevelopmentPublic Sector Development KeywordsCONSUMPTIONCUSTOMSDEVELOPING COUNTRIESDUTY DRAWBACKDUTY DRAWBACKSEXPORT COMPETITIVENESSEXPORT PROCESSINGEXPORT PROCESSING ZONESEXPORTSFREE TRADEPRODUCTIONTARIFFTARIFF REFORMTARIFFSTRADETRADE BARRIERSTRADE BLOCSTRADE LIBERALIZATIONTRADE REFORMTRADE RESTRICTIONS PDF DownloadLoading ...